LP:Record interim profits for New Britain Palm Oil
HALF year profits and revenues soared at New Britain Palm Oil as production continued to increase at its Liverpool refinery.
The company, which specialises in the production of fully-traceable and sustainable palm oil, reported interim results today which showed a 96% increase in revenues of £249.3m, on current exchange rates, and record pre-tax profits of £75.2m compared with £51m last year.
Total oil production in the reporting period increased from 229,595 tonnes to 318,166 tonnes and the average selling price for its crude palm oil product was £692 per tonne, against £488 per tonne last year.
Palm oil sourced from sustainable resources is considered the most ethical and environmentally-friendly for indigenous eco-systems and wildlife.
The Liverpool refinery, on Regent Road, opened last year and the company said today that it “continues to meet all of our expectations with continued growth in sales volumes of high grade sustainable and traceable oil in a segregated supply chain”.
Today’s report also reveals that the £18m plant, which created almost 30 jobs, has been EBITDA-positive (earnings before interest, tax, depreciation and amortisation) since March this year, “with good, consistent margins”.
And it adds that capacity at the plant continues to increase, with more available: “Volumes delivered to our customers continue to increase on a monthly basis and the refinery is now running at approximately 70% of our installed capacity”.
A bakery products plant next to the refinery should be commissioned early next year.
Distribution costs have risen 62% in the six months due to the increased tonnage shipped and a slight rise in freight costs driven by higher diesel oil prices.
Chief executive Nick Thompson said today: “New Britain Palm Oil’s performance was very strong in the first half of 2011 with a record profit before tax reflecting higher palm oil prices and improved productivity.”
Forward sales amount to 130,000 tonnes of crude palm oil at an average price of £666 per tonne on current exchange rates.
The board said the company continues to trade in line with its expectations, will resume dividend payments in October, and it “remains confident of delivering further progress and growth”.
